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Failure to complete - what happens next?

21 replies

howdypartner · 04/05/2014 08:35

We have the most incompetent solicitor in the world. We were due to complete on Friday, all packed up etc and then I get a call at 4.20pm saying they had failed to get a vital bit of paper to the lender so the funds weren't going to be released in time. The paper is now with the lender, I swing from being in floods of tears to wanting to punch the solicitor's lights out.

What actually happens next?

I understand I am now in breach of contract so presumably I need to complete asap? This would mean Tuesday which is hardly convenient. Do I have a choice? Can I leave it until Friday? Can I be fined? And can the vendor have a say in when we complete because I assume Tuesday is as inconvenient for her as us?

And can I get any compensation from the solicitor?

Thanks

OP posts:
miramar · 04/05/2014 09:52

That's awful, how frustrating.

Do you have direct contact with others in the chain? Do you know what impact Friday's mess had on them? That may impact the action they take.

House buying its a matter of contract law. The possible penalties will be in your contract. Read it carefully this weekend.

I suspect your solicitor prefers to give bad news by phone than in writing. I'd write to them, (cc head of firm unless it's a one man band) probably in an email this weekend, stating what happened on Friday, their part in the mess and what you want. For example "As you know we are very concerned and disappointed that due to you failing to submit xxx to lender yyy in time, the lender did not release funds in time for the planned completion to purchase house zzz on Friday. We would like to know why this happened, what has been communicated to the others in the chain, and what penalties or other consequences could arise from this. We would also like to know what you have done to minimise any potential penalties. Given that the failure to complete was due to action by your firm I expect your firm will assume responsibility and conver any costs arising from this issue. Please provide details of your firm's complaints procedure.

specialsubject · 04/05/2014 10:42

exactly. Solicitors do carry malpractice insurance and you should claim on it to get this one out of business.

MaryShelley · 04/05/2014 16:55

This reply has been deleted

Message withdrawn at poster's request.

FlatCapAndAWhippet · 04/05/2014 18:19

Oh dear. I am inclined to say what mary said...sorry :(

howdypartner · 04/05/2014 19:17

Thanks all. I've drafted the email to solicitor, copied to the partners, and have made sure I have saved all the voicemails and emails between us. I can't find a copy of our contract (chaos in the house due to moving!) so I'll wait until Tuesday to see what she says we are liable for.

So livid with her for putting us and the vendor in this situation that I'm going to make sure I recoup costs and am after compensation.

OP posts:
Itsfab · 04/05/2014 19:22

I hope it all works out.

MrsFlorrick · 05/05/2014 15:30

Your copy of the contract should tell you.

Don't panic yet!! Please don't. This can and will probably have a happy ending.

Banks are notorious for being slow in sending funds. In my experience you need to have the solicitor make the request 5 working days before completion.

Your solicitor probably requested too late. As he has requested now, funds are on way.

The heavy penalties for non-completion (non-performance) of the contract, only kick in after you have failed to complete after 3 notices have been served by the vendor.

You didn't complete Friday so a notice will be served Tuesday.

Clearly you're hoping to complete ASAP and your solicitor can convey this to other parties with timescales.

Now the penalties are interest charges for the remainder of the purchase price (ie property price minus deposit = outstanding amount at x% per day of late completion).
That part won't be too bad.

You may also be responsible for lost removal firm costs of other parties in the chain. This will be more expensive.

Generally if removal vans are packed they will go to a depot and there will be a standing charge per night. Obv this is a bank hols weekend so an extra night.

You need to get into your bank first thing and get written confirmation from them that your solicitor requested the funds too late.

Otherwise you will foot the bill for solicitor and bank blaming each other.

If funds were requested in time, you may have some comeback against the bank but they usually exclude this as part of their agreement.

Until you get hold of the bank, you can be 100% that its the solicitors fault.

Unless of course he already has owned up to screwing up.

Either way you're correct to be hopping mad.

Fwiw I've been involved in commercial property for more than 15 years and all I can say is never ever schedule completion for a Friday!

Rangirl · 05/05/2014 16:00

Have you had the chance to check the contract If you could put up the wording we could advise Agree with last poster you do need to find out exactly what went wrong Strong possibility that solicitor may not have asked Lender for money in time However may have been a reason for this eg some lenders need details of buildings insuranceon request for funds and solicitor may not have had details in time Don't get me wrong no excuse for you being told at4.30 on Holiday weekend Friday that move was off if you had not been warned that was likely However you do have to find out exactly what happened
And be realistic re compensation

As a property lawyer for 20 years in these circumstances (never happened touch wood)if I had forgotten to request loan funds in time I would expect my firm to pay the interest etc and reduce or write off my fee

I would not expect to have my firm shut down as suggested by a poster up thread

howdypartner · 08/05/2014 06:08

Thanks for all your advice. I haven't been able to speak to my solicitor since Friday - she won't answer emails or accept calls. But the estate agent told me that the funds have come through and have been transferred to the vendors solicitor but they won't release the keys until she has given them an undertaking to pay the interest and late completion fees.

I'll chase her again today and if not am just going to pay the costs myself so we can get in our home.

Cannot believe that solicitors like this are able to still be in business!

OP posts:
Rangirl · 08/05/2014 06:21

Phone them first thing and insist on speaking the Managing partner Or better still go into the office and refuse to leave until you get to speak to someone It is totally unacceptable for the solicitor not to speak to you in these circumstances

Wishfulmakeupping · 08/05/2014 06:22

How horrible this is ridiculous!
I thought our buyer had the worst solicitor ever but I think yours wins :( hers ignored her contact attempts too in the end myself, the buyer and the estate agent called the solicitors secretary to say if we did get a call back by lunchtime we'd go directly to their office...he managed to call us pretty quick after that!
Hope it gets sorted in the end op

Wishfulmakeupping · 08/05/2014 06:23

Did not get a call back rather

MrsFlorrick · 08/05/2014 07:35

Howdy! Shock Wow. Refusing to take your calls!

Obv trying to avoid liability for late interest and fees and while you wait your mortgage sits in someone else account ticking up interest.

Agree with others. Phone and demand to speak to managing partner. Also email to managing partner setting out circumstances and that you wish to make a claim against them for fees and charges incurred. Not just what the vendors wish to charge but also interst on your mortgage amount and any other charges you've incurred (cancelled removal vans etc) and you're no longer paying their fees.

And state in email that you will take it up with the Solicitors Regulation Society today as it seems no one will speak to you.

Essentially you wish to have the name of their professional indemnity insurers (or you'll get it from the SRA) and you WILL be making a claim today.

Sorry they are so incompetent and its such a mare. WineFor you.

MrsFlorrick · 08/05/2014 11:30

Howdy any luck yet??
Brew Or Wine for you. (Holds hand)

HauntedNoddyCar · 08/05/2014 16:51

Good grief this is horrible for you. I'd be phoning her boss if she has one or going down there. Is it worth posting in legal to see if anyone else has something to suggest.

eurochick · 08/05/2014 16:56

Howdy your engagement letter with the solicitor should set out a complaints procedure, and in particular someone senior to speak to if you are not happy. Start here.

This is absolutely appalling treatment. I am really shocked.

miramar · 08/05/2014 19:07

Yes, posting in Legal will hopefully help.

howdypartner · 10/05/2014 18:50

All sorted, finally. Got through to the managing partner who sorted it out. They're covering the costs and we got the keys on Thursday.

Their complaints procedure is on their website so I will write to them about this - the level of stress and inconvenience this has caused is just unacceptable.

On the upside, the house is amazing and I know we're going to be really happy there for yours.

Thanks for all your support!

OP posts:
kirako · 10/05/2014 18:58

Great news!

RandomMess · 10/05/2014 19:04

Glad you got into the house, how rude to not take your call and not reply to your emails!!!!!

MrsFlorrick · 10/05/2014 23:47

Howdy. Congrats on new home Grin enjoy it. Wine For you.

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